Author: James Walton

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Plan sponsors completing an annuity purchase have a fiduciary duty to select a safe insurance provider, and a common factor in that decision is the insurer's use of a Guaranteed Separate Account (GSA). A GSA adds an additional safety net and makes the promise to pay benefits from a particular insurer more secure than it would be without it.

This article describes GSAs, quantifies how much additional security GSAs can provide to participants and describes how plan fiduciaries should analyze GSAs when making the annuity provider selection.

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This material was created to provide information on the subjects covered, but should not be regarded as a complete analysis of these subjects. The information provided cannot take into account all the various factors that may affect your particular situation. The services of an appropriate professional should be sought regarding before acting upon any information or recommendation contained herein to discuss the suitability of the information/recommendation for your specific situation.

Consulting and insurance brokerage services to be provided by Gallagher Benefits Services, Inc. and/or its affiliate Gallagher Benefit Services (Canada) Group Inc. Gallagher Benefit Services, Inc. is a licensed insurance agency that does business in California as "Gallagher Benefit Services of California Insurance Services" and in Massachusetts as "Gallagher Benefit Insurance Services." Neither Arthur J. Gallagher & Co., nor its affiliates provide accounting, legal or tax advice.